Using the industry peer median P/E multiple (trailing + forward), W.W. Grainger, Inc. (GWW) has a fair value of $952.15 based on 8 comparable companies in the Industrial - Distribution industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| W.W. Grainger, Inc.GWW | 51,341 | 30.2x | 27.1x |
| PACCAR IncPCAR | 60,701 | 25.6x | 22.9x |
| Fastenal CompanyFAST | 52,146 | 41.7x | 41.4x |
| AMETEK, Inc.AME | 48,649 | 33.2x | 26.4x |
| Carrier Global CorporationCARR | 46,168 | 32.5x | 21.2x |
| Rockwell Automation, Inc.ROK | 40,164 | 46.6x | 29.5x |
| Roper Technologies, Inc.ROP | 37,972 | 24.8x | 19.3x |
| Paychex, Inc.PAYX | 33,467 | 20.4x | 19.8x |
| Otis Worldwide CorporationOTIS | 30,234 | 22.2x | 19.1x |
| Industry Median | 29.0x | 22.1x | |
| (*) Profit after tax | 1,706 | 1,896 | |
| Equity Value | 49,546 | 41,861 | |
| (/) Outstanding shares | 48 | 48 | |
| Fair Price | $1032 | $872 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.